SteelMint’s bi-weekly domestic pellet index “PELLEX” moved up by INR 350/t on Tuesday (28th Jul 2020) to INR 6,950/t DAP Raipur. Few Raipur based pellet makers have stopped offering cargoes after concluding deals for limited quantities at higher prices. Sharp spike has been seen in pellet offer prices in Raipur and nearby states on supply tightness.
Few deals were concluded by Durg and Jharsuguda based pellet makers in the Raipur market recently.
This price has been derived using five data points: i.e trades, offers, bids, substitute parity, and export realizations. You can download the detailed methodology by clicking on this link Click here
Assigning weightage to data points:
- Four transactions of Total 21,000 t were reported at INR 6,950-7,150/t (DAP, Raipur) in this publication window by Durg, Raipur and Jharsuguda based sellers. This transaction was given a 66.7% weightage in the index.
- Firm offers were reported from Raigarh and Odisha which have been given a weightage of 16.7%.
- No firm bids were recorded in this publishing window.
- SteelMint calculated the price at which Raipur pellet can displace NMDC lump in the sponge rotary kiln feed (substitute parity) on a DAP Raipur basis at INR 6,000/t and given a weightage of 16.7%.
- The export realization factor has not been considered as pellet makers are less active in exports owing to increase in domestic offer prices.
Calculation of Index-:
Source-: SteelMint Region-wise pellet deals and offers:
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